2013 PMRB FORUM Capitol Resort, Lingayen, Pangasinan October 30, 2013.

2013 PMRB FORUMCapitol Resort, Lingayen, Pangasinan

October 30, 2013

“Institutionalizing and Implementing Reforms in the

Philippine Mining Sector, Providing Policies and Guidelines to Ensure

Environmental Protection and Responsible Mining in the

Utilization of Mineral Resources”

Major Features of EXECUTIVE ORDER

NO. 79

Provides for additional areas closed to mining applications.

Prime agricultural lands, in addition to lands covered by the Comprehensive Agrarian Reform Law of 1988, as amended, including plantations and areas devoted to valuable crops, and strategic agriculture and fisheries development zones and fish refuge and sanctuaries, as determined by the Department of Agriculture.

Tourism development areas, as identified in the national (Department of Tourism) and local tourism development plans.

Other critical areas, island ecosystems, and impact areas of mining, as determined by the Department of Environment and Natural Resources.

SALIENT FEATURES OF EO 79

Provides for the full enforcement of environmental standards in mining.

Full enforcement of the environmental standards as prescribed by the various mining and environmental laws, rules, and regulations.

Necessary remediation measures shall be immediately required from the mining contractor/permittee/permit holder/operator concerned.

Pertinent suspension order/s shall be issued and stays in effect until the danger is removed.

Mining rights shall be granted to only those who are able to strictly comply with the environmental management record requirement.

SALIENT FEATURES OF EO 79

Provides for the review of the performance of existing mining operations and cleansing of non-moving mining rights holders.

A multi-stakeholder team shall be created, led by the DENR, to conduct a review of the performance of existing mining operations within six (6) months from the effectivity of the EO and every two (2) years thereafter.

SALIENT FEATURES OF EO 79

Provides for a moratorium on the grant of mineral agreements pending new legislation on revenue sharing schemes.

Financial or Technical Assistance Agreement (FTAA) shall be allowed over National Government-Owned Mining Assets.

Exploration Permits and other forms of mining permits shall continue to be granted.

Application for Exploration Permit shall be approved or disapproved within six (6) months from the date of its acceptance.

No expansion of existing contract areas shall be allowed unless there is an imminent and/or threatened economic disruption.

SALIENT FEATURES OF EO 79

Provides for the establishment of Mineral Reservations.

Mineral reservations shall be declared over potential and future mining areas with known strategic mineral reserves and resources.

Mineral exploration, and research and development will be intensified for the delineation of mineral resources and reserves.

SALIENT FEATURES OF EO 79

Provides for the opening of areas for mining through competitive public bidding.

Mining rights and mining tenements shall be granted over areas with known and verified mineral resources and reserves, including those owned by the Government and all expired tenements, through competitive public bidding.

Mining contract/agreement may be renewed subject to existing laws, rules and regulations at the time of renewal.

SALIENT FEATURES OF EO 79

Provides for the disposition of abandoned ores and valuable metals in mine wastes and mill tailings.

Disposition thru competitive public bidding of abandoned ores and mine wastes and/or mill tailings generated by previous and now defunct mining operations, except those that are involved in pending or decided cases in court.

SALIENT FEATURES OF EO 79

Provides for future value-adding activities and the development of downstream industries for the mineral sector.

The pertinent national program and roadmap shall be formulated, based on the Philippine Development Plan and a National Industrialization Plan.

SALIENT FEATURES OF EO 79

Provides for the creation of the Mining Industry Coordinating Council (MICC).

Composed of the members of the Climate Change Adaptation and Mitigation and Economic Development Cabinet Clusters, with the following major functions:

Ensure continuing dialogue and coordination among all stakeholders in the industry.

Conduct and facilitate the necessary capacity and institutional building programs for all concerned government agencies and instrumentalities.

Constitute and create a Task Force Against Illegal Mining.

Oversee the operations of Provincial/City Mining Regulatory Boards.

Conduct an assessment and review of all mining-related laws, rules and regulations, issuances, and agreements.

SALIENT FEATURES OF EO 79

Provides for measures to improve Small-Scale Mining activities.

Small-scale mining activities shall be allowed only for gold, silver and chromite and confined within the declared People’s Small-Scale Mining Areas or Minahang Bayan.

Large-scale mining tenement holders shall not be allowed to undertake small-scale mining operations in their contract areas.

Hydraulicking (water jetting), compressor mining and the use of mercury shall be strictly prohibited.

SALIENT FEATURES OF EO 79

Other Features of EXECUTIVE ORDER

NO. 79

Ensures consistency of local ordinances with the Constitution and National Laws (LGU cooperation).

Creates a One-Stop Shop for all mining applications and procedures.

Improves transparency in the Mining Industry by joining the Extractive Industries Transparency Initiative (EITI).

Creates a centralized database for the Mining Industry.

Creates an integrated Map System for the Mining Industry.

Adopts the Programmatic Environmental Impact Assessment.

OTHER FEATURES OF EO 79

What have been done?

Issued the Implementing Rules and Regulations of EO 79 in October 2012.

Started preparing the No-Go Zone and Go Zone map for mining.

Started the process for enrolling in the Extractive Industries Transparency Initiative.

Prepared a draft bill to increase share of Government from mining revenues.

Increased the Filing Fees for Mining Applications.

Increased the minimum capital requirements for mining applications.

What have been done?

Started review of performance of mining contractors and permittees.

Completed the preparation of the draft revised guidelines for small-scale mining.

Issued the directive to lift the moratorium in the acceptance of applications for Exploration Permits and Financial or Technical Assistance Agreements on March 18, 2013.

What have been done?

More stable and protected mining investments.

Enhanced acceptance of mining projects, particularly by the communities and Local Governments.

Expected Output…

Department of Environment and Natural Resourceswww.denr.gov.ph

Mines and Geosciences Bureauwww.mgb.gov.ph

Mines and Geosciences Bureau Regional Office No. 1

www.denr/mgb1.org